Misconceptions About How The Margin Used In Forex Trading

Most novice forex traders do not truly understand how margin trading is done. For them, the margin is simply a way to trade with a larger position size. However, it is actually a lot of misconceptions about trading with margin that could prevent you from utilizing this margin effectively.

Margin represents money that is borrowed. There is a myth that stems from a misunderstanding of how the margin used in forex trading. Margin in forex is actually known also as a "performance bond" because it represents the amount of money you need to make sure your losses can be covered. To illustrate, let's say You want to open a position worth 150.000 u.s. dollars. Because of the margin requirement was 2%, then you are required to deposit 3.000 Us dollars on your trading account. This amount is intended to cover any losses that may occur when You trade.

How about $ 147.000? isn't that the money borrowed from a broker? No, because when you trade forex, you are not actually buy or sell currencies, but only an agreement to do that. Thus, there is no need for borrowed real money.

You can only close the margin requirements with cash (cash). You can also open a new position could produce a profit to increase your margin. This is why the amount of capital in your trading account, known as equity (equity), calculated as the sum of cash plus the profit from trading positions still open reduced losses from open positions. This means that your equity continue to fluctuate over time as changes in currency values in the market.

However, it can also be beneficial to you because, if nothing is done, a margin call is a broker can only shut down some of your trading positions which are to meet the requirements of equity loss margin again.

Forex trading is very risky because of the high leverage is used. But even though there are indeed a number of specific risks related to currency trading, that risk is not of public oversight. The reason is because regulators already limit the leverage ratio may be offered, such as in the US. Before 2010, traders can enjoy a leverage ratio of up to 1:400, meaning that with only 100 U.s. dollars in trading accounts, they can open a position worth up to 40.000 u.s. dollars. But lately the U.S. regulators restrict leverage ratio up to 1:50 course even for brokers based outside the country. This restriction has limited risk in forex trading significantly.

Identify First Your Forex Broker Before Trading

A broker or brokerage firm is one of the essential elements that support our activity in forex trading. We are talking about here is a regulated forex broker properly trusted with regulators and has been recognized the world as the CFTC and NFA (United States), the FSA UK (United Kingdom), FSA (the European Union), (Australia) ASIC. Surely you don't want to risk your funds at a broker that is not transparent or even fraudulent (scam), unless maybe you want to just try a quality broker.

If you feel in doubt against a broker you'll choose, you can inquire directly to the regulator above, they are very open and transparent. It is strongly recommended that you do not easily caught up with the lure of forex brokers who are less sensible, as brokers and traders we actually have the same interests that is gaining profit.

When we are trading, the prices that we get from our selection of brokers might be different with other brokers, although not significantly. This is because every broker has its own likuiditor that vary in price. Likuiditor could be another larger broker or other financial institution. Likewise, the policy determines the magnitude of the spread applied to each different forex brokers, there's that provide fixed spreads (fixed spreads), although when there are important fundamental news spreadnya can be widened, some use spreads vary (variable spreads) correspond to the actual state of the market. There are basically 2 types of broker, that broker type of ECN (Electronic Communication Network) and brokers who make their own market or market maker.

Market maker brokers

Market maker brokers determine prices based on what is considered best for them. This occurs because each of us open position buy, broker market maker must sell, and vice versa if we open sell positions they will buy. Therefore brokerage market makers dare to give fixed spreads (fixed spread) because they alone determine the bid and ask prices that you see on the trading platform, though it does not vary much with the actual market circumstances. Dependent of his strategy, there's the hedge our position with other traders, some are directly trade against our position. So there is a conflict of interest between us with the broker, though not all market maker brokers cheat their origin has been regulated properly by a credible regulator as mentioned above.

Pros: fairly complete trading facilities (news feeds, free EA etc.), and the movement of the price relatively more quiet, not too volatile as often happens on broker ECN type.

Disadvantages:

• Because there is a conflict of interest between us with the broker, then there is a potential party brokers would be cheating if the broker is not regulated properly.
• The price we get less nice than broker ECN type.
• When there are important fundamental news release can happen slippage (springboard price) which resulted in our quick stop loss hit (the worst), especially when we use pending orders (stop and limit orders).
• A lot of that limit and some are banning the use of the scalping strategy.
• There are a few that caught cheating (scam) using a particular strategy to make our stop loss hit quick, or commonly known as a broker with stop loss hunter.

Broker ECN types

With trading broker ECN types we can interact directly with the market without any intervention from them. ECN type brokers bring together sellers and buyers directly and in real time. They have benefited from the magnitude of the spread that has been on the mark-up as well as the cost per transaction that we have done (comission). This type of broker to use spreads vary (variable spreads) in accordance with the real market conditions. For currency pairs are very liquid spreadnya could be smaller than the brokerage market makers.

Pros:

• Price bid/ask offer better than the brokerage market makers
• For the pending order when there are important fundamental news release slippage does not occur (springboard price).
• Does not prohibit or limit the use of the scalping strategy.
• Suitable for scalper because of volatile cost more movement than brokers scale model maker.

Disadvantages: minimal trading facilities.

Learn Addressing Market Rumors In The World Of Trading

The rumors could be interpreted as information that is unverified. The truth of the rumor has not been ascertained and is usually spread by word of mouth. Rumors can be the same thing with rumors, hearsay, or gossip. Every rumor is indeed true and will not necessarily proven, but his appearance is always based on a thing.

The same can also apply to market conditions. As we know, very sensitive to financial exchanges with news that is being circulated in the market. It can even be said that the currency exchange rate moves was quite the news itself. In other words the news is driving the emotions of the market resulting in a centralized point balance on currency exchange rates. That's why the news is extremely influential investment portfolio against a trader.

Anticipation Towards Market Rumors

1. Looking for opportunities

Traders have a good trading psychology course will not be affected by the rumors and rumors are circulating. But that does not means he is not completely open position or just wait and see it. He will find the right position to make deals. Market berfluktuatif is the opportunity to take advantage as much as much. But surely in taking chance traders also use certain considerations and calculations. Don't just buy and sell origin.

2. Create a Trading Plan

Recognized or not every trader can have different views towards the market. Similarly, ways of thinking, risk tolerance and the target, surely will be different. Just because someone has a method of trading they can run well and successfully, the method is not necessarily a good fit for you.

Build a trading plan and run it well is closely associated with the discipline. But discipline is not enough. You have to have extra tight discipline. Have extra tight kedisplinan is the most important character of a successful trader.

Strict discipline needed to run a trading plan that we wake up. Trading plan itself is a guide as to what we should do, why, when and how we will do it. Trading plan covers our personality as a trader, private targets, risk management and trading system which we will apply. As the saying goes, If you fail to plan, then you have already planned to fail. That is, if you are planning to fail then it would fail. If you are planning a success then it will be a success.

The facts say failure in trading caused by because we do not have a trading plan or do not run trading plan well. So have a trading plan that suits your character as a trader, and continuously update its in line with your experience studying the market.

GPS Forex Robot Review 1130 More Customers - See What Others Say

See More Of What Other People Say About GPS Forex Robot Here.

Jane says:

Guys, I used a lot of autorobots during last 2 months and some of them generated profit, but during few weeks it was lost. I can say that GPS Robot it's THE MOST STABLE auto robot which I used. It generate profit slow but VERY VERY STABLE! HIGHLY RECOMMEND! Guys please close sales because with your GPS Robot anyone will be millionare soon. =((((((

#1137

Mr.Vanderson says:

Good day, I want to say that I trade on the forex market already during 13 years and GPS Robot one of my favorite systems. I generate not very much every month but it VERY stable and this is what I want to get. Thank you Mark. Keep up good work!

#1136

Sam says:

PERFECT EA!!! Already generated 624% on my account! Very STABLE!!!

#1135

Patrik says:

Very good system! Stable 6 months trading! Thank you guys for your performance!

#1134

yaouba sani says:

Mark, you are doing a GREAT JOB!!!! Thank you so much for the encouragement. Keep up the good work.

#1133

amine says:

very stable and consistent EA ! Thanks

#1132

Martin says:

PEFRECT! I have one year stable trading results with GPS Robot! Very IMPRESSIVE! My pleasure!

#1131

Huan says:

THE BEST EA! 3 years with me and stable trading! VERY VERY GOOD!!! THANK YOU!!!!

#1130

Samuel says:

Hello, my name is Samuel and I want to thank you guys for your robot. It makes few trades during week on unstable markets but it generate profit for me already during two years. Impressive! Many traders will think that this is not real comment and i'm not real person but I can assure you that this is REAL comment and i'm REAL person! Thank you Antony and Ronald!!!

#1129

Korean says:

Fantastic robot. Made 3000% in just 3 years

#1128

khasru bhuiyan says:

Dear sir. Thanks for ur nice co-operation.

#1127

Andrew_J. says:

It's a pleasure to deal with you guys! A real professional.

Robot is simply fantastic! I recommend everyone.

#1126

Atrie Johness says:

Hi friends!

I'm happy to have you in my life. If I never find GPS Forex Robot I think that all EA's is a fake, but now I know that can be profitable strategy, GPS make profit for me day by day! Thank you for the robot!

#1125

Steve S. says:

Dear all, I start with GPS Forex Robot several years ago, all that I can say is just a perfect robot, maybe somebody say that profit is too little, BUT people think it is profit NOT a loses, when I use another EA's I just collect loses and my account was burned many times. With GPS I steel on profit line, it is just amazing.

#1124

JAYAVEL says:

I LIKE TO WORK WITH THIS ROBOT. CAN YOU PLEASE SEND THE LIVE PERFORMANCE REPORT OF PAST FEW YEARS. I MADE MANY LOSS THIS IS MY FINAL TRY IN FOREX MARKET. WILL THIS ROBO WORK WITH WWW.HOTFOREX.COM

#1123

Mary L. says:

WOW version 3 is released now, I have several trades until now.

Thank you Mark, Ronald and Anthony!

#1122

David says:

Hi Mark, i familiar with your Services since you starting your first website years ago. I did not bought any former recommended or testet EA's from your affiliatelinks in the past and won't change my decission. But as a professional Currency Trader since 1999, i strongly need to admit, that your GPS-Bot is a great Solution for unexperienced Traders and Experienced Traders as well, who still can't controll their emotion during trading periods. Well done and a very strong Performance during the last Years! Go on keep doing this!!

#1121

Rajesh Komar says:

Your robot is great! I use my Indian broker - have excellent incomes, my start capital already has grown on 50%.

Thank you!

#1120

Niki says:

This is the best robot ever, I try a lot of garbage. Spend a lot of money. Now I'm happy. Use the robot several month and haven't even one loss! This is great!

#1119

F.X.Walter says:

Finally I find honest people in this world of fraud. I totally trust you guys! All answers that I get was honest and the robot is fantastic. My friends use this robot and now I in the GPS Forex Robot community!

#1118

TommyS. says:

Good support, always get an answer in time. Stable profit, easy to install. Good job!

#1117

Sandro says:

Never see something even close to this robot, use it for a several month and always have profit.

Happy, happy, happy!!!

#1116

Miko Tutonnen says:

Fantastic robot.Much thanks again. Much obliged.

#1115

Mike says:

Wow! Today I get one more profit trade! Happy with the product.

#1114

John Wall says:

I'm extremely impressed with your robot. Keep up the excellent quality work, it is really the best robot that ever try.

#1113

Leonaard Charles Taka says:

I am interest & respect your EA / robot ....I want learn the robot system

#1112

Joseph says:

Perfect robot. Majority of the trades are wins. Highly recommended.

#1111

Gerardo Fontana says:

I really enjoy the robot. Looking forward to get more and more trades. Thank you Anthony, Ronald and Mark.

#1110

Hugo says:

Thanks for robot, this is a fantastic trading results. Much thanks again. Fantastic.

#1109

Lee Chang says:

I have a big hope on this EA. Since start at December almost 5 month my account is grow every week, no one losing trade! Waiting for the new version!

#1108

pipsfx says:

Love the robot! I lost all with scam products, almost $54k. I think that never believe in Forex again, but now I'm happy with GPS, think that this robot return all my money that I lost.

#1107

DanyDean says:

Really enjoyed this EA. My account have only profit trades! Never see before something even close like this EA. Awesome.

#1106

Fabio says:

Muchos Gracias for your GPS robot. Keep up the great work.

Fabio Silva

#1105

KellyG. says:

I'm your big fan, use GPS during one year now. Of course I haven't gold pyramid, but stable profit every week and I highly appreciate it! Thank you Mark and all team!

#1104

ZacHary says:

HELLO! One and first robot that can make profit trades. LOVE you guys, keep up the great work. PS: waiting for the next version!

#1103

Jed FX says:

Best robot ever! Use it 6 months and have only positive trades, thank you guys!

#1102

Fabio says:

GPS is my favorite robot! We always have troubles with government, economic, my stupid boss is going me crazy. I believe that sometimes I leave my job and put all time on Forex trading, I'm sure GPS robot help me to do that!

#1101

Niky says:

Hello! I'm happy with GPS Forex Robot, always profit trades!

Thank you all and Happy Xmas!!!

#1100

See More Of What Other People Say About GPS Forex Robot Here.

Trading In The Tokyo Session Turned Out To Be The Best Session

The Tokyo session, also known as the Asian session. The Tokyo session this is considered the best time to trade forex price movements because it is stable and easy to use for trading. Described in The book The Best Time of Day bouquet David Rodriguez that most traders would be surprised if knowing this fact: trading in the Tokyo session turned out to be the best session because of trader's assumption in General is the opposite. Traders consider the Tokyo sessions have a slow movement and a little profit potential.

But after review, the movement of Asian session did have its own characteristics compared to European and American session. Because actually on European and American session prices thus tend to be less stable and sometimes there is an shake-up enough price shock trader in identifying market.

Perhaps because it is not aware of that fact, finally more traders often using European and American session rather than utilizing session Tokyo. With a small movement, the Tokyo sessions are often used in the determination of support and resistant. This is because there is a tendency to persist in the price range of the levels of support and resistance.

Many traders often lose capital because of rapid price movements. Many traders who often spend his balance due to erratic price volatility. For those who don't like the movement of a market that is tight, then the Asian session was his choice.

Characteristics of price movements in the Tokyo session

But otherwise if a trader wants to get extreme price and chooses to turn a profit with a quick movement, it may be better not to choose Tokyo session. Traders who do not like the Tokyo session are those who tend to make deals at a time when the existence of news or price volatility is high so it can more quickly get the profit or loss. Consequently they should be able to control your transaction and when floating and they also have to answer for a capital or completely lost.

In conclusion, time Asia is the market's most profitable due to the tendency of prices to move broadly stable and have the longest period of time before the opening of the next session. That way, you can control the trade without fear when prices experienced a spike in prices.

GPS Forex Robot Review - One Of The Best Trading Expert Advisor In The Market Today

GPS Forex Robot has been repeatedly perfected into his version of now. One of the best expert advisor in the market was developed by a team of programmers led by Mark Larsen. In General, GPS Forex Robot operate based on a relatively simple metric, but his track record is capable of showing high profitability are very consistent. Following his review.

GPS Forex Robot Profile

Type: MT4 Expert Advisor With Automatic Execution

Specialization: Trading Trend, Martingale, and Stop and Reverse at pair-the pair EUR/USD, EUR/CHF, EUR/GBP, and USD/CHF

Broker: specs could be anywhere as long as the broker platform MT4

Minimum capital: not recommended for less than $ 100

Contact and customer service: GPS Forex Robot Website

Price: 149 USD

Money back guarantee: money back guarantee, available in 60 days

GPS Forex Robot Review

1. A real account (USD) on the FX broker of Choice with the leverage of 1:200.

His impressive performance GPS Forex Robot will no doubt once we see the footage ' Myfxbook ' below. The gain reaches + 356.33%, while very low drawdown at 9.79% only. Overall, any profitability reached 92%. Since EA is executed from May to June 2012 to 2016, gain every month is almost always positive, only once-two negatives. However, it should be noted that in the summary it appears this EA only Transact in the pair EUR/USD only.

2. A real account (USD) on the FX broker of Choice with the leverage of 1:200.

There's not much difference between the recordings ' Myfxbook ' above with this one. Only, here, GPS Forex Robot has operated longer, namely since March. Still functioning, with gain + 82.82% and 9% drawdown. Profitability is also primed to reach 95%; of 300 times the trading, this GPS Forex Robot only lost 2 times only.

Conclusion

If it goes in accordance with its track record, then GPS Forex Robot this is definitely one of the best expert advisors. However, please note that the second proof ' myfxbook ' given shows trading only on the pair EUR/USD. In addition, both equally noted the very high initial deposit; one of 100.000 USD, and another 50.000 USD. Although the makers recommend the relatively low initial deposit only 100 USD, but judging from the evidence then it can be inferred that this EA will work better if you're ready to put higher capital.

If you are interested with this GPS Forex Robot ?

Please listen more at GPS Forex Robot Website here

The Motivation Of Trading For Traders

What made you want to learn trading? Or, if you are indeed has long been doing this activity, what the hell makes you survive to continue to trade? Answers questions about the motivation for doing this trading activity can be very diverse. There is a wildlife trader replied that the motivation of him in trade is because trading has become a hobby for him. There is an answer, because trading can bring in some extra income the fair. There is even an answer because trading is indeed his main profession.

Yeah, it could be the motivation between one person with other people is different, though for the same activities. Motivation itself could be interpreted as or factors that cause a person to do something. So it could be the thing that drives a person to do one activity will be different with other people. For the trader's friends who consider trading activities as a hobby, I can roughly nih, these types of traders who usually like painstaking look around at home for hours, observe the indicator chart, and feel lonely when the market is closed on weekends.

As for the trader who considered trading as a side job or even that has made trading as the main income, it could be they instead rely more on EA aka robot trading and investing as a rational investor. Gratitude if there's a trader friend indeed a hobby can make trading and trading as its main income. Gee, could kebayang the hell is fun, if we could work in accordance with our interests.

Okay, for the friends of traders who have been "so", I don't really deal with what their main motivation. That often makes me concerned, is the motivation of friends who are just beginning to learn trading. Many friends (candidate) the wrong assumption, traders consider trading is a short road towards the rich. That just by merely playing guessing buy or sell, it could benefit without having to dredge struggled.

Usually they plunge into this world of trading with the spirit of passion, invest with a relatively large nominal, with the hope of going to gain an advantage that is also big in a short time. Type (a candidate) is this kind of a trader who eventually later thus have negative views about forex trading. After experiencing the MC, they are aware that it's not as easy as trading turned out to be imagined.

Now, if you now indeed recently in stages was interested to learn trading with the motivation to want to get rich quick, well, I suggest to stop first. The review first before attempting to invest or deposit. I would like to reiterate that this is not the way trading is quick and easy to get rich. If you hear stories of traders who've managed to gain a stable and fair of trading, don't quickly stripped. Try to ask first how long they've learned. Also ask how much time, effort and costs they already spend in the process. Consider these things. Do you want, able and willing to continue to learn?

By the way, I remember one of my traders love test (candidate) traders who want to learn trading. Question: default is "ready battered yet? If you're ready, come on battered us together-learning together ". Well lo, usually still plenty who've resigned first tuh, with questions like that. Where there are people who want to learn something new with the motivation to want to battered?

Forex Diamond Review - High Performance Trading Accounts Smart Fast Easy

Forex Diamond EA is a robot designed for automated trading in the high frequencies by combining the follow trend and counter-trend strategy, use a good money management and configuration parameters of dynamic trading and execution speed. Complemented by a range of complementary devices such as spread slippage protection, protection, help-desk, and News of the trading performance filters, EXPERT ADVISORS Forex Diamond is called uncountable.

Forex Diamond EA Profile

Type: MT4 Expert Advisor With Automatic Execution

Specialization: Trading with high frequency on the EUR/USD, GBP/USD, USD/JPY at the M15 timeframe

Specifications the broker: no specific requirement.

Minimum capital: there is no minimum limit

Contact and customer service: Website Forex EA Diamond

Price: 227 USD to an account and a few live demos

Money back guarantee: 100% money back guarantee within 60 days

Post sell service: lifetime free self-update, help desk 24/7, and access to the member area.

Advantages:

1. The robot is designed with three strategies: capitalize on the trend, counter-strategy, trend and counter trend scalping strategy. Customers can use the three as well as one strategy alone.
2. There are optimal money management, as well as protection from the high spread and slippage occurs frequently when the market is very volatile.
3. Relatively not so in need of optimization than any other EA. Customers only need to adjust trading parameters based on the market situation, then EA will adjust themselves.
4. Latest update Forex Diamond EA V5.0 has been providing News Filter, so that it could avoid trading when there is a high-impact events fundamentally. Not installed by default, but can be applied by installing a AvoidNews = true.
5. Post selling service complete, includes customer support to ongoing maintenance.

Forex EA Review Diamond

Forex Diamond EA provided some track record in ' Myfxbook ', which shows the performance of a trading expert advisor is in a different mode. Based on the tape, how profitability Forex Diamond EA?

1. A real account at Alpari with leverage 1:500, applied on all currency pairs.

Appears in the screenshot below that reached 92% + gain, but the drawdown is quite high at 55%. Worth noting also that the ups and downs of the equity sharp enough, though in General continue to profit. In addition, the summary of trading Forex EA seem that Diamond just open a trading position on four pairs: EUR/USD, GBP/USD, USD/CHF, and USD/JPY only. Excluding those factors, profitability remained high at level of 70%.

2. demo-account in Alpari with leverage 1:500, applied to the pair USD/JPY only.

EA Forex trading performance Diamond here appear to be more consistent. The acquisition of gain ever more fantastic reach 189.08%, with lower drawdown at 43%. Still at first, with track record of profitability was steady at 70%.

3. Demo-account in Alpari with leverage 1:500, applied to the pair GBP/USD only.

On the currency pair sterling/dollar, Forex EA Diamond performance not as good as on USD/JPY. However, it can be seen that the new equity charts started lackluster in March 2016, coinciding with the period in which the pound sterling started erratically due to turbulent plan Brexit referendum held June 23. From here it can be concluded that although there has been a News Filter, but the robot remains robot, it's hard to adjust to the changes in the geopolitical marketplace though protected from news that a major impact has been scheduled on the calendar.

Nevertheless, in this recording Forex Diamond EA is still able to maintain Gains us 121.6%, and any drawdown was imprisoned at 142.50%, so that profitability remains 72% although there are certain months in which gains its minuses.

Conclusion

Claim the makers of EA backtest results based on that super low drawdown is less precise. In fact, the drawdown on Forex Diamond EA is quite high. However, Forex Diamond EA worth a try when you are ready to trade with a minimum capital of approximately $ 2500. Good profitability and supportnya facilities are very impressive. Moreover, this EA has come with news filter. However, it still should be careful and should not be enabled on a currency pair in the middle of certain fundamental conditions and insecurity are not scheduled in the forex calendar.

Are you interested in?

Please subscribe directly on his website here.

Terms On Forex Trading That Must Be Noticed By Beginners

Before we started the Trading world, it's good to understand some of the terms commonly used in the world of trading. This term is absolutely for you to understand. Of the term which I have stored in my head to understand and disappears, the better I write it here so that you can understand. In the parse some terms in forex, I will divide into sections for easy to be understood by you.

The following terms in Forex Trading:

Broker: services and only provides trading facilities, namely an agreement between buyer and seller to be able to do transactions-buy, Loss or profit. By trading on a trusted forex Broker, security funds will be more secure.

Note: don't just chase the big Bonus of the Forex brokers, Security Funds is the most important thing.

Pip: Pip is commonly used in mentioned the value of an exchange rate or also called with "points". An example: EUR/USD last week worth 1.4113 and today rose to 1.4125 it means pairs increase by as much as 12 Pips/Point.

Leverage: this is more or less the same meaning with "margin collateral" at stake. Simply put is when we infuse capital 500 dollar then if the unit is subjected to leverage 1:100 means that we are given the rights by the brokerage to buy 100 x greater than the funds that we have. Mean with money of 500 dollars, we provided funds for the purchase of foreign currency in the amount of 50,000 dollars. Well it's called collateral margin or leverage. Every broker has its own leveragenya. In this case, the large leverage means the possibility of profit/loss became bigger. Likewise, the small leverage then the magnitude of the losses that might occur with smaller profit consequences also become smaller in value. I myself prefer a little leverage because with such a smaller risk of loss. If I believe a transaction will benefit, then I can bring up the number of lots that will be me are operating with.

Contract Size: this is the magnitude of the multiplier in calculating profit and loss. The value is already a fix and have been set.

Lot: Lot is a unit of the contract on any transactions. So when I Transact, for example purchase (buy) EUR against USD then the value of the unit in the lot. Again each broker has its own rules in determining the lot, relying on the pip and levererage them.

Margin Call-: Margin Call may occur if available margin is insufficient to support the Potential Loss, so that the position will be automatically including Close. Arguably a Margin Call is a kind of Nightmare for traders, although there is also the assumed "not enough pergalaman as traders if had never felt the margin call".

Pair: in forex trading known Pair (pair), currency, e.g. EUR/USD, GBP/USD, USD/JPY, etc. When I do buy/long, pair against currencies of EUR/USD, then I buy EUR and sell USD. As well as the other way around. That's why in forex trading is not like selling goods. We can directly Transact as a pair without having to have the pair it first.

Take Profit: Is order to liquidate a position automatically at a certain price when a trader has gained a certain amount of profit.

Stop Loss: Is order to liquidate a position automatically at a certain price to limit losses that might occur if the market moves will fight direction the trader's position. or it can also serve to protect the profit obtained by the traders.

Trailing Stop: Is a facility provided by the Forex Broker, which can change the Stop Loss to lock automatically profit in multiples. Trailing Stop is the development of the Stop Loss. Trailing Stop is generally only works when the trader's position has profit more than a certain minimum value determined by the Broker (e.g. minimum 200 pips/point).

That's what some of the terms in Forex Trading you need to understand before entering into the world of Forex.

Get To Know Supply And Demand In The Forex

The market price moves like the law of gravity. Buyers and sellers of mutual attraction until it reached a price agreement. By observing the price charts, traders tried to predict, analyze, and explore the price movement.

In essence, every movement of currency prices determined by supply and demand (Overture) (request) If the news is positive, then the demand increases and supply decreases. Whereas if there is negative news, it's usually request to be slightly reduced and supply has increased.

Supply and Demand

Supply is the amount of goods available, while Demand is the amount of items that you want. To understand, let's use a simple illustration here. Imagine you are going to sell oranges at market own results nearby and You don't necessarily have to sell out of stock all Orange Orange because of the price that is being inflated.

At first the selling price for 1 bag of oranges only amounted to 1 dollar. Of the entire crops, You only sell 4 or 5 bags at these prices. Eventually, the price of Orange reached 10 dollars per bag and at the price you sell the whole oranges that you have. From this it is clear that illustration is recommended that Yours may not directly sell the entire Orange you, but wait until the price is really high.

The chart below is called "bidding curve", the red line indicates the supply increase because the price moves higher (located on the horizontal axis).

Now think of the buyer-seller relationship from the point of view of the consumer. The lower the price, the demand be higher which is the opposite of the curves of supply. If the price of oranges is just $ 1 per bag, then the desired consumers is to buy orange as much as possible. Just as rising prices, as well as the supply, because if the price of the oranges into 10 dollars per bag, then the consumer will automatically find another product that is cheaper.

The seller and the buyer will meet and compete in the market to determine the price. So the market price is determined. The following is a table that describes the situation:

The supply and demand curves can show prices efficiently because buyers and sellers can monitor their trading from behind the computer screen.

Lay The Assumption Is Wrong About The Forex Market

There are some general assumptions the layman regarding forex trading. This article will discuss about the assumption that the wrong fix it at once. That needs to be understood by a trader is, the forex market is the largest in the world. Many advantages to be had by trading.

The forex market requires "the Office"

Turnaround capital flows which reached $ 1.5 trillion traded every day. Many of the assumptions that all types of transactions should be done with the direct opposite meet physically. Maybe the assumption most layman, forex market it like a bank teller or purchase goods conventionally. Whereas, in fact, forex market is a market that is online and not centered. You will not get physically on the stock exchange. All kinds of foreign currency transactions are done online.

No need to learn, just have experiences only

Next is the wrong assumption lay people assume some traders can generate profit because it had long been in practice with the system. However, after further study, the novice trader just try to guess or follow other traders from the system without enough knowledge will be the essence of the system. So the disadvantage often encountered by novice trader because not knowing the trading system that he used for sure. So, the best thing is the knowledge which is supported by the experience.

Important quick rich

When you're trading, do not forget to apply the discipline. You should always make logical decisions and examined when trading. This is not a system that is used to "get rich quick". But a rule financial is to be done. Do not think too high for profit. Use the logical and realistic planning, so that what you get can eventually be object to plan ahead. The system which is only concerned with profit but did not take into account the risk is not the way to protect profits. So, be aware of this problem. Realistic thinking can really help you get more success compared to the wishful thinking of excessive but could not get done.

Capital must be large

One thing to remember is that just because you are trading with a minimum deposit does not mean your chances of success are small. The myth that circulated during this time is to get away from a loss every time happens floating minus, you should have a large capital. Whereas, with a smaller capital you can dress it with success by limiting the risk of narrowing the trading lot and applies risk management.

Scalping is great for beginners

Unlike other forex trading, sometimes gives a sense of strange and not in keeping with the circumstances. What you think is right may not be so with the market. Don't think that you could get rich quickly using the Forex market. The truth is that short-term trading or scalping, the famous can turn a profit quickly really isn't good for beginners. To be a scalper, You could be prosecuted for traders who have quick and precise response, and could face the psychological distress of being able to open and close positions within a relatively short period. The ability of course will not be owned by the novice trader.

The greater the leverage, the more good

If You want to try it, it might be very risky. You should think about the leverage that can help to provide the necessary capital, but did not give a pressure too great risks. Would be so terrible if You use leverage, however can not be careful in using it. Certainly there was great losses that will come by.

In conclusion, practice, running the trading, as well as prepare it carefully is the key of success in the forex market.

The View Of Many People Towards The Forex

There are a number of views in the community stating that the real sector of the invest better than the non real sector. Because in the real sector is a field which is clearly visible by the public, such as the sales of products and services.

When having an excessive, then the funds tend to invest in the fields of property, the purchase of a Franchise. If they want to invest in non real sector, then stocks and mutual funds more selected from on forex trading. The reason, stocks and mutual funds appear to be more ' real ' than with forex.

But along with the increasing intelligence of society in investment, then it can be said that the forex trading will be one of the main alternatives on the non real sector investments other than stocks. The magnitude of the return that can be given and the liquidity of the forex trading became one of the hallmarks of the investment sector. Plus, the Government started to play an active role as a regulator of futures trading in the products (like forex. commodity and index, etc.).

The underlying fear is about the principle of "High Risk High Return" from forex trading itself as well as the lack of education on investors thus causing kesulit to predict movements in the beginner investors a price that ends in a loss. On the side of high return forex trading cause anyone can earn huge profits in just a very short tempo. However as a double-edged sword, if we can gain a considerable profit then any equal risk of loss and is directly proportional to the mastery of the techniques of the trade, information and attitudes of investors. The problem for a novice investor is mostly just looking at it from the side of the High Return forex trading, where profits could reach 20% of the original capital in just one day. But not on the side of High Risk. Plus the existence of some local market forex marketing by accentuating his return merely side without providing information or capabilities of the trade. In the end the losses investors recently formed a stigma of bad people that forex trading is the same as gambling.

Even so, there is actually a risk management facility (risk management) prepared by the system for us, in handling a large risk in investing in forex. So, though risky, is not entirely the case. Who can tell the difference between a gambling investment with is, though both have an element of speculation, investment has instruments of analysis and predictor of reading the situation ahead. This means that the investment is not just an event element of speculation, speculation should be smaller than the value the certainty of prediction. If not, then it becomes a gambling event where science that used only the science of probability (chance) only.

Forex trading has a wide range of indicators of technical analysis, and fundamentally, to predict a foreign exchange rate movements. So the trend strengthened and weakening a currency can be predicted with analysis-analysis (analysis of > speculation). Another consideration is if it is gambling then surely this investment banned by the Government and Government in other countries. Instead, its existence is strengthened and the turnover happens so large compared to the other Exchange products. Many people say that forex transactions: same meaning with a game of gambling. And this presumption will increasingly santer with the few clients who suffered losses on investment instruments on this one.

Subject to other considerations, had become a forex it is an investment, of course, gambling is prohibited secama of its existence by the Government or by any other Government. Instead of his being banned, strengthened and turnover that occurs even the largest compared with other Exchange products. Clients who suffered losses on the forex market (many of which are experienced by a novice) caused them to assume the same gambling with forex. In fact the only cause of the loss of their funds is their own! They may know about forex trading but did not prevail against it. Due to a lack of understanding of instruments existing analysis, the potential losses to be larger and that is what befell on themselves.

There is an old saying that those who know will be defeated by those who understand. Those who understand will be defeated by those in control. Those who master it will be defeated by those who love and those who love it will be defeated by those who live up to. I think this applies to forex trading.

What The Heck The Actual Forex Trading It? The Study Of Compulsory Trading Read

Actually the so-called "forex trading" that is the same trading activities such as trading in General, just that trading involves the exchange of two currencies of different types of foreign currencies. For example, you buy United Kingdom pounds sterling (using dollars that You have), then the ratio of the Pound/dollar rise, you're selling Pounds and buying Dollars again. At the end of trading you will have more dollars than before you trade.

World currency has always been on the exchange rate floating (uncertain or capricious), where they are always traded in pairs. These currencies in forex is known in the "symbols" or abbreviation that consists of two parts; one for the first currency, and another for the second currency. For example, the symbol is USDJPY stands for Us dollars (USD) and Japan Yen (JPY). Just like stocks, in forex you can apply the tools of technical analysis on forex charts. Analysis of traders can be optimized with "symbol" forex, which helps you find a profitable strategy.

If you think one currency (called with the second currency) will be valued against other currencies, then you can exchange the currency with the intended currency (first currency called), and can make "deals" in it. If all goes according to plan, in the end, you will be able to conduct transactions otherwise, i.e. swap (sell/buy) the currency of the first killings of the other, and gain from the transaction. As a side note, in forex trading there is no dividends are paid on currencies as it did in the stock market, so the benefit is generally only gain obtained from the difference between buy and sell prices.

Transactions On The Forex Market

Formerly, most forex trading limited to large banks and institutional traders only. However, advances in technology have made the small traders can also profit from the many benefits of forex trading just by using the internet or trading online. At the moment, the foreign exchange market brokers are able to break down the size between a large bank unit becomes smaller. Thus, small traders, like you and I, can get an opportunity to join in elections caused profit in the forex market.

Online transactions on the forex market are performed by dealers at major banks or known by the term ' Broker '. Banks, primary dealers, dealer-and sometimes also speculators-the large speculators are the main players in the trade. They are the parties that are able to take advantage of the liquidity of the currency market is remarkable. The Forex market has the liquidity that is higher than the stock market as more money is traded. Forex spread among banks that exist around the world, and this means transactions occurred during 24 hours. Dealer-dealer that is in the main institutions also worked for 24 hours/7 days. When you're sleeping comfortably in bed, the dealers in Europe could be thus were memperdagangan of currency with colleagues in Japan.

In fact, the forex market never stops, even in the event of a bomb incident in America, on September 11, 2011, you can still make transactions as usual. The currency market is the largest and oldest financial market in the world. This market is also called the foreign exchange market (foreign exchange market) or can be shortened to foreign exchange market (FX market). Forex is also the most liquid market in the world. Price movements in the forex market are very smooth and without any gap (gap) as a commonly encountered by traders in the stock market. The clients may place take-profit and stop-loss orders at broker for executed automatically when the movement arrived at the price have been determined.

Also, unlike stocks, Forex trading is done with a high leverage, such as 1:100. This means that with an investment of $ 1000, you can control $ 100,000, and increase the potential benefits. Some brokers also provide so-called micro and mini accounts, where you can deposit a minimum of less than or around $ 100. Of course this makes it easy for anyone who wants to join the trading.

Examples Of Forex Transactions

Let's say, you currently have a trading account for $ 25.000 and you trade with a 1% margin requirements. The current quote for the EUR/USD for example 1.3225/28 and you place your order to buy 1 lot 100,000 Euro at 1.3228, in the hope the Euro will rise against the dollar.

At the same time, you place a stop-loss order at 1.3178 representing losses up to 2% of the account's equity if trading opposite to you. The stop loss level is 50 pips below the price order, and take profit is at 1.3378, i.e. 150 pips above the order price.

Thus, you risked 50 pips to get 150 pips. The advantage that you can get is three times greater than the losses incurred. If this is workable with consistent, then it can help you to get a greater percentage of profit from the losses.

How about marginnya? The trading value was $ 132,280 (100,000 * 1,3228). Then the required margin deposit of 1% of the total, amounting to $ 1322.80 ($ 132.280 * 0.01).

For example, as then your expectations, the Euro strengthened against the dollar and a limit order has been on 1.3378 then the position will be closed. Thus, the total profit in this trade for $ 1500, assuming each pip is worth $ 10.

History Of Forex Trading You Need To Know

Forex starting from ancient times. Forex history begins from the time immemorial. When traced, forex transactions commenced from trading commodities, such as gold, rice, and others. For currency transactions of its own as it is today, the market has experienced an evolution.

Broadly speaking, the evolution of the forex market to rapidly as it is now can be divided into 4 stages, namely:

1. The period of the gold standard, 1980-1914
2. The period during World War I, the 1919-1939
3. Bretton Woods Period, 1946-1971
4. The period of Floating exchange rates, 1971-present.

But, broadly speaking, the evolution of the forex market is divided into 2 phases i.e. phase period of fixed exchange rate and a floating exchange rate Period. The period of the gold standard, the period during World War I and the Bretton Woods Period is the period of stage including fixed exchange rate. At this stage, no exciting forex transactions due to changes in exchange rates can only occur in a relatively narrow range. Because the exchange rate was fixed by the State Government (upon agreement) with a certain value of gold.

After the time of Bretton Woods was the one, after the failure of the fixed exchange rate Period in maintaining economic stability, forex transactions began to passionately. This happened because judgment against exchange rates between countries handed over entirely to the market mechanism. The market will determine if the exchange rate was too expensive (over-valued) or too cheap (under-value).

At this time forex trading has been very easy to do by anyone from anywhere. With a capital of a computer connected to the internet, you can already do a good forex trading trsansaksi business from home, Office, cafe, and from anywhere there is an important internet connection facilities.

Forex trading is the world's largest market measured by the total value of the transaction. With such great deals daily volume reached $ 4 trillion per day, this certainly offers huge advantages anyway and one of the exciting opportunity to earn an income online.

Many people have already made this forex as a primary source of income. And it's only reasonable because forex is a business that is very-very promising, in the manage with heart and quiet little knowledge then it would produce a profit which is very abundant.

Thus a brief history about forex trading. Hopefully can add your insights in the world of trading.

Know Your Broker Dealer (Dealing Desk) And Non Dealer (Non Dealing Desk/NDD)

What does a Dealer? This means that they are in a position against your trading, if You lose then they will earn income. You lose $ 1000 then the Dealer will get income $ 1000. This is how the broker Dealer.

Broker Dealer = Dealing Desk

Dealing Desk = Dealer = Bucket Shop

Broker Dealer this will generally limit the trading style of clients, and also coupled with the large number of ' favourable Trading Terms ' of their own. This occurs because the Conflict of Interest between a broker and the client is very high. It also opens up the chance of occurrence of cheating-cheating without your knowledge, such as by way of execution orders slowed, the server is often down, blank, requote the prices, not motion (freeze), stop loss hunting, prohibited use of this technique that, price manipulation, and others so that you easily lose/loss

So in order to keep people interested, then they usually performed with diverse dangle and the facilities are fantastic, as can leverage up to 1:500 to 1:1000, even interest-free, super small and sometimes spreads fixed (not appropriate market), many bonuses, could mutual transfer with 3rd party 3, and other things that aims to appeal to people as soon as possible mensetor money in them.

Actually be-able trading through a broker Dealer. But it should be large so that powerful search pays you if win + a SHOULD BE regulated so as not to cheat too sorely against you (so that it can still be controlled within the limits of reasonableness)

A Non-Broker Dealer = Non Dealling Desk/NDD

The traits and characteristics of Non-broker Dealling Desk/NDD:

1. They take advantage of the difference in spreads.
2. They continued the order (buy/sell) from the client to the liquidity provider to its partners broker (could be a big bank or even other big brokers)
3. Does not limit customer trading style, scalping like hedging, trap, etc. Why free? because there is no Conflict of Interest among brokers with clients.
4. Because of the price, the NDD is available in client Yes it is without any anomaly or the intervention of a broker. As a result the price/no spread might be fixed (spread certainly changed-the Fox suit market/variable). Usually the moments leading up to the news can spreads melar-melar. But there is also a bright side, i.e., the price will be more transparent and for what it is.
5. Generally the leverage provided it is not too high. All must be in accordance with what is on the market.

As for the non dealing desk brokers there are 2 types: STP and ECN.

ECN Types

Broker ECN type is actually participating in the market as well as the big banks that serves as a liquiditor, or bring together sellers and buyers among their user (not dibandarin).

Types Of STP

Broker STP (Straight Through Processing) is a brokerage order thrown to another broker, usually thrown into the ECN (but if the throw to a Dealing Desk broker Yes cilaka also:))

Good broker ECN type or STP is not going against your trading, and they even prefer you win or a lot of trade (lots of frequency/scalper), because that means profits for them.

Broker Hybrid

There is 1 more, namely the type of broker Hybrid. This is a combination of a dealing desk ECN/STP and. Usually this type of broker will membandari to order a spare change or a small (micro, mini), but for a large lot order will then be processed with STP or ECN.

Conclusion

Know your broker which of course included in the easy-easy is difficult, given the process behind the scenes fully we cannot see. Many brokers who ngakunya ECN/STP whereas is not. Jelilah in observing the bids and notice of regulation of the broker.

How To Determine The Winning Broker: Low Spreads Or Fast Execution?

Determine the winning brokers surely can not be considered one eye. The success of a trader in maintaining consistent profit depends on performance and transparency of the trading platform of their respective brokers. Well, from the many features and options available, there are two essential factors that we have to note, that spreads as the cost of trading and execution speed when we open or close a position.

Most of the traders are generally dropped options on low spreads, because clearly the cost of trading should be as small as possible so that profits can be earned him profusely. But did you know, if not all brokers with low spreads really transparently inform its clients an extra burden that may be incurred when air-trading?

Beware Of Unexpected Additional Loads.

The leading broker will give the waiter on his client in compliance with bid-bid written on pages subskripsi, either the actual value of which low spreads or accuracy of fast execution. Ideally, all the costs and burdens of trading will be shown by their platform each time the client transmits a request (order buy or sell).

However, in practice, there are a number of factors in which the additional burden will be borne by the client at the time the market in conditions of high volatility is not normal or with limited liquidity. Among other factors is slippage and wider spread (floating spread).

Floating spread and Slippage can occur even though you have selected the winning broker. It will happen especially when the market is experiencing a surge in the price suddenly because market participants react quickly to economic news releases. For example when NFP news releases or GDP, balance between the number of the position of buyers and sellers will soon be transformed into a leaning to one side only.

Slippage

Slippage on the condition the market may overload the client is greater than the number of reference spread. For example, in the following cases:

A trader open buy orders on the pair EURUSD with a price request 1.13050. But due to the condition of the market is experiencing a surge in prices, eventually executed (filled order) at 1.13053. Whereas the time brokers offers low spreads of 0.1 pip. It is clear that the slippage of 0.5 pip has exceeded spread written.

A total of 0.4 pips from the examples above probably feels minor and paltry. However, if you use more than one lot and leverage over the margin of 1% (1:100), value realization of 0.4 pips will be quite undermining your deposit.

Requote will generally be offered brokers when slippage occurs. Depending on the type of your brokerage platform, could have slippage even quite profitable if the price of executed better than the price request.

Floating Spread

The basic concept of the floating spread is a spread value in the above-mentioned volume depends on the position of the seller against buyer. The more skew the dominance of one of the parties then would increasingly wide (large) also spread value.

The leading brokers may offer fixed spread where the value pegged to the value of the low spreads. But it could have been the benchmark of yesteryear could compromise because market conditions were not balanced as an example when market conditions have a major impact news release above.

Well, feature low spreads offered the leading broker You in fact are the lowest spread value at normal market conditions. Generally traders be tempted to open new positions when the market is trending strongly in condition (where one party dominates the direction prices). Remember the potential spread widened nor should you estimate if you do not want to lose a deposit slowly.

How Accurate Is Your Broker Fast Executions?

The accuracy depends on the type of fast execution platform that offered the winning broker. You should first know what a difference Dealing Desk platform and Non-Dealing Desk.

Dealing Desk

Do not be surprised if the bold Dealing Desk platform offers fast execution without requote (fumble his price of request). That is because the dealing desk-keep the Groove position and volume of trading clients exclusively. In other words, you as the client is actually against your own broker as a provider of liquidity.

So, Yes, it's up to Your dealing desk brokers want to adopt set how accurate fast execution on certain trading times or not.

Non-Dealing Desk

How accurate fast execution of platform NDD indeed diverse, obviously because each platform NDD access interbank trading route as a provider of liquidity. The volume of trading at the interbank network is very dense and allow the occurrence of slippage.

The accuracy of fast execution platform NDD, you should test it first. For example, when slippage occurs, consider how far miss the marked price and whether it is better or worse than the price request.

Important (Beware Of Traders)

The bottom line from the above discussion of measuring contrast on how transparent the pre-eminent broker additional burden to inform Your clients in addition to the basic features like low spreads and fast execution.

Estimate return how much actual cost which you will responsibility plus the value of the lowest of low spreads. In addition it also tests the accuracy of a quick execution of your platform, whether suitable or away from the initial offer of broker.

Remember also that the cost of risk will be increasingly magnified in volatile conditions in the market (due to the release of important economic news, etc.). At moments like that, liquidity providers will probably widen the spreads or offer price when requote misses, so potentially adds to the load of client trading.